S&P Global Ratings: EU’s post-COVID recovery plan could create its own green safe asset – covered by specialist press

If the EU carries out a proposal to finance 30% (€225 billion) of its planned €750 billion recovery fund through green bond issuance, it could become the main liquidity provider for a green safe asset, as well as the largest supranational liquidity provider for a green safe asset, according to a report recently published by S&P Global Ratings.

A larger pool of green assets would also help policymakers and central banks achieve their aim of greening the financial system. Today, the green bond market represents only 3.7% of total global bond issuance, making it difficult to ask market participants to build green portfolios. This will also likely reinforce the international role of the euro as a green currency.10

Following outreach by Moorgate, the news was covered by: Global Capital, DevDiscourse, Scottish Financial Review, International Financing Review, ESG Clarity, Chief Investment Officer, and Opalesque